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MONEY With Melissa Francis

News/Business. Melissa Francis with a breakdown of the day's top stories and their impact on the American Taxpayer.

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01:00:00

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U.s. 12, Us 9, Cyprus 8, Syria 6, Washington 5, America 5, Europe 5, Israel 5, United States 4, Ben Bernanke 3, Neil 3, Landry 2, Imf 2, Johnson 2, Anadarko 2, New York 2, Melissa 2, Steve Moore 2, Chevron 1, Iran 1,
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  FOX Business    MONEY With Melissa Francis    News/Business. Melissa Francis with a breakdown of the  
   day's top stories and their impact on the American Taxpayer.  

    March 21, 2013
    12:00 - 1:00am EDT  

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attention to. neil: you just want to throw money at it? >> no, i don't. neil: yes, you do. >> no, i don't. i would raise the minimum wage. i just don't want t throw money at it, neil. there, you know, there's wonderful things we can be doing, -- neil: like burning the money instead. francis, this is what worries me from the market t per speck -- perspective,and maybe cypress tipped us off that there's problems out there, and it's not alone saying that. maybe this idea -- i'm not saying there's another meltdown, but there are worries that justifiably get people t pull in; right? >> oh, i couldn't agree more, neil. i think, you know, the markets have just sort of become numb and apathetic to the international concerns, and i don't know apathy is prosperity either. yes, obviously, you know, in the modern times, america is co-dependent like the other countries around the world, and
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there is signals there are weaknesses, and in this country, we have fiscal problems, and blaming the republicans is the easy thinged too, and if someone things obamacare is not related to this, to me, i don't understand that beause obamacare costs a lot. if he thinks obamacare and the costs intrinsic in obamacare are not related to main street and wall street -- neil: john -- >> it's contagious. neil: you need something to look forward to like individuals need it. that's what makes you spend and the members spend and all of us spend, and when we get nervous we don't do that; right? >> right. we just dig heels in as i said, and i think what the elected officials just ail to observe and do, neil, is just really respect where people are coming from, and, frankly, stop taxes, stop regulations, fewer lawsuits, let's help get small business out of the hole they are in, and it's just a classic example of how very little most of our elected officials understand how a business, a
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small business is run in america. that's just too bad. neil: all right. we'll watch closely. thank you, all, for your help today. we'll keep a close eye on all the developments and the president's trip and whether this economy is going to go up. tomorrow, a lookat numbers you don't really quite see all the . melissa: i'm melissa francis and here's what's "money" tonight of the as we speak setting themselves up for a run on the bank. cypriot banks closed until next tuesday. people are scrambling to get as much as they can from atms. should you be worried about your money in the bank right now? we'll we'll find out from today's power panel. plus billionaire's take on the pulse of the economy and consumers. landry's is one of the country's largest estaurant and gammably companies. he is here to tell us where he sees the biggest headwinds and opportunities right now. call it the anti-student loan. investors will pay school costs for a piece of
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student's future income. isn't that interesting? can this help solve the student debt crisis? the ceo behind it will explain this break through because even when they say it is a not it is always about money melissa: first today's market moment. the bulls are back in the driver's seat. the fed says its policy to stimulate the economy will continue and investors breathed a sigh of relief. dow came close to setting a new record high. the nasdaq marched back toward a 12-year high. the s&p 500 finished less than seven points away from its all-time high. here is who made the big ney, proctor & gamble, chevron, travelers and johnson & johnson and united technogies all closed at all-time highs. congratulationses if you own those stocks. all right. our top story tonight how the government in cyprus is make being the situation
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there even worse, contributing to the chaos and virtually guaranteeing a bank run. the government says that cypriot banks wot open until nex tuesday! meantime, atm withdrawals are being limited to 500 bucks with no bailout in sight, is there any solution to keep calm and carry on? that is e first question for today's money power panel. we have a former consultant to the imf and the u.s. treasury department. julia is a chief economist at pnb paribas and former economist for the u.s. federal reserve board. and the always wonderful steve moore. you recognize him from "the wall street journal." that is him on the right there. john, let me start with you. >> yes. melissa: seems like they're making a situation that could have been resolved because of course they're not taking the 10% levy on deposits but keeping banks closed. people are beginning to panic. they're almost guaranteeing a run on the bank. are they making the situation worse? >> not politically. if tomorrow you wake up and you find there is a 10% tax on your bank deposits, you
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will not be happy. if you're a politicianin cyprus you're dealing with this and they're bank backing away from it. it was a bad idea in the first place. cyprus needs $10 billion from the european union and the european central bank and they have given others like greece hundreds of billions of dollars. they're upset. the cypriot banks are insolvent. they're going, they will get a run. melissa: they are insolvent and they will get a run, yeah. >> but it's notot cyprus's fault in my view. melissa: doesn't matter whose fault it is if it happens. julia, what is the outcome? what is the domino effect? which if there is a run on the banks there which there certainly will be, should i withdraw money from my bank here? >> no, i don't think so. the structure of the cypriot problem was quite unique the bank assets in cyprus are something like 730% of the country's gdp. it really is is a safe haven for russian investors. that is why when they needed money, there is always going
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to be se burden-sharing in a bailout. who so will bear the burden? well, it is was russian depositers basically. melissa: yeah. >> that is their unique structure, even, if spain came asking for aid, they would not even contemplate the same kind of burden-sharing with depositers because most spanish depositers are spanish. and so, i don't think it's a unique, i think it is a unique situation. whher it does spread and damage confidence in the european banking system. melissa: yeah. >> we'll just have to wait and see. i think it will take time. i don't think we'll see spaniards lining up in madrid. melissa: steve, when they finally get the courage together to summon their fortitude to reopen the banks, whenever that is, there is almost certainly will be a run on the banks. what do you think that means? >> first o all there is no goodp shuns i see for the cyprus banks right now. one thing that is interesting, melissa, is the solution to put a tax on the
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bank accounts. i mean we all know thhis, right, if you tax something you get less of it. melissa: right. >> that will make people less likely to put money in the bank and more likely to pull money out of the bank. i'm perplexed by the solutions they're cominging up with. i agree for americans this is certainly not a need to feel any panic in the u.s. banking system. if anything this may actually make the u.s. banks stronger as money pulls out of europe into the safe haven of the u.s. bank >> i agree with steve. melissa: let's go with that. u.s. banks stronger? >> it does as a safe haven. but what makes me nervous is not that there will be a run on u.s. banks. you about there are a trillion dollars in deposits a-10% tax, sorry, there are 10 trillion. a 10% tax on u.s. deposits would yield a trillion dollars. i'm afraid some nutty budget tear in the washington will come up with the idea. >> good point. >> and scare the day lights out of everybody for no good
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reason. >> they're already talking about that, look they're already talking about a transaction tax. there is a lot of buzz about that. they will not put a 10% tax on but i wouldn't rule it out. >> i would rule it out. melissa: what about the transaction tax? that takes us down the same road. they're talking about the consumer financial protection bureau having oversight of 401. cans so they can protect us from ourselves, i don't know. >> well, look, i mean people in washington are not known for their great decision-making skills but i don't think that they would go so far as to actually tax deposits. i think there -- >> it is important to make a distinction between actually doing it and having something propose it. they're not going to do it because we'll see a run on the banks if they try it. >> i don't think they will propose it. >> you way underestimate washington. i'm sure the president is dreaming about it. melissa: steve, what do you think? >> look, i don't think there is any immediate danger of especially given how poorly it turned out in cyprus but
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i think in the longer term, melissa, these guys are very, hungry for revenues in washington. what i keep hearing from the budget tears, boy, there is a lot of money out there, even if we put a .1% tax on that is lot of money. melissa: take back to europe before we run out of the time. if there is a run on the cypriot banks, what will happen to cyprus? will they have to leave the european union? is there recovery in the u.s.? >> terrible news for europe generally. i don't know if they will apply cyprus back in the e.u. or not but it weakens the sense that europe has its act together. melissa: right. >> i think in some ways, we're the least rotten apple in the cart. this is only confirms that further. melissa: it does, but julia, it is another blow to the european recovery which is even happening which is for sure bad for us. what do you think all of this means for our economic recovery and growth here? >> well, look i think this is one reason why we saw the fed keep its foot on the gas
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pedal today. these uncertainties, the structural problems in your are still there. the economic outlook is difficult at best. i agree that certainly this is not great news for strengthenin confidence in businesses who might want to invest in europe. so, i think it's tough. it takes 20% of the global economy and confirms it will be in recession for a while. that will affect. not directly and indeed we are a bit of a safe haven. there is plentiful of liquidity in u.s. markets. in terms of demand for exports. demand for tourism and so on, we'll feel some effects and it is one reason to be very cautious. melissa: i'm glad you mentioned that. you guys are great..3 we'll hold you there. we want to talk with you more about the federal reserve meeting and get reaction what ben bernanke said and about the potential exit plan which is the big question. stick around, don't go anywhere. meantime let's turn to the middle east. president obama is in israel. while reaffirming the united states commitment to the
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jewish state he is not confirmed reports of a kept call weapons attack in -- chemical weapons attack in syria. one of the reasons we send millions of aid to countries in the region to protect our access to oil. but now domestic production is higher than ever so should our investment in the region be changing? let's talk about that. united nations ambassador and fox news contributor, john bolton. start with israel. the trip there, how significant was that, what do you think the president achieved and what does it mine? >> i think he achieved his main objective and got off the plane and put his arm around bebe netanyahu. he can check the box. he has been to israels president. he got a great photo-op and will get a few more during his trip. this is trip where the symbolism and politics is very different from e private conversations. i think obama bringstwo very tough, unpalatable messages to e israelis. number one, don't even think
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about using military force against iran's nuclear weapons program. and number two, you need to make more concessions to the palestinians to try and reach the two-state solution. so i think the private talks are going to be very, very tough. meliss wow! so, given that, i mean let's move over to syria for a second. one of israel's top officials saying, it is quote, apparently clear the chemical weapons were recently used in syria, but at the same time, the obam administration says, there is no evidence to support that there was a chemical attack. so you're talking about they're at odds on these other issues. they're at odds on syria as well it sounds like? >> i think we don't know enough facts about what happened. the assad regime claimed the opposition used chemical weapons. the opposition claimed the assad regime used them. our ambassador in syria, by the way is in washington, there was no chemical weapons attack at all. here is the bottom line for the united states. these weapons can not be allowed to exit syria.
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they can in the be allowed to get out of the country to fallnto the happened of al qaeda or other terrorist groups to be used against the united states. melissa: what are the odds of that happening? >> i think they're high. i think the assad regime is in disarray. we can not have confidence. they continue it have command-and-control over those chemical weapons. it h been a goal of al qaeda for decades to get weapons of mass destruction and this may be a real opportunity for them. it's a very dangerous situation. melissa: so what does it mean for stability in the region if we are, sort of at odds as you describe it with israel on some different issues if they perceive us not chiefing close to our traditional partner and ally in the area? what does it mean for stability overall? melissa:. >> well it makes us very vulnerable. stability is on a downward path. stability is decreasing for two years with the arab spring which is going the wrong way. iran continues to make progress towards the deliverable nuclear weapons capability. if it gets deliverable
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nuclear weapons you can bet others ev former secretary of state clinton said, saudi arabia, egypt, and others will get nuclear weapons as well. we do not have a clear policy in the region and we will suffer for it. melissa: here is the "money" question of the day though. you look at data out of the energy information agency saying for first time since 1995we're producing more oil in this country than we're importing and we are continuing on this path because of recent technology that we're finally producing more than we're bringing in. maybe we become less dependent on this region for oil. does that mean in your opinion our policy, our buness in the region in terms of stablizing it, o responsibility, does it change? >> well it could well. i would add natural gas production although it would be largely used in the western hemisphere because oil is a global market and if we're producing more not only for our own consumption here but to be able to tell so friends and allies being less depend enon oil pumped from states that don't have our best interests at heart
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that will not only have a significant economic impact, it will have a geostrategic impact as well. all to the good from the perspective of the united states and its friends. melissa: ambassador bolton, thanks so much for coming on. >> great to with be with you. melissa: next on "money", the fed gives a good outlook for the economy. is that worth anything? you don't believe how many times the fed has been wrong befo. we looked it up and crunched numbers. you won't believe it. details next. plus the fed doesn't see an easy road ahead for the economy but is the future for businesses as rough as it appears? we have a billionaire ceo of landry's restaurant and gaming empire. he is here to give us his outlook. more "money" coming up. ♪ .
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♪ . >> fed released latest projection for u.s. economy. it may not be worth the paper it is printed on. almost never. we looked at fed tra record on gdp. look at that.
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look closely. they're never right. they're in the middle. they're on the right. actually what happened. not good. are these projections worth anything. let's look back to our power panel. john make con, former consultant to the imf. julia coronado, chief economist with bnp paribas and former economist for the u.s. federal reserve board. of course that is the "wall street journal" steve moore. steve, their track record not so good. >> it is pretty dismal. they're not good forecasters all they ben bernanke is looking pretty good right now. the economy is picking up steam, no question about it. we're seeing really good stock market obviously. the one thing that i worry about,hat ben bernanke doesn't worry about, those esther george, the fed chief, that kansas city bank basically said we have to worry a little bit about inflation when we keep putting $80 billion into the economy every month. i agree with that concern. melissa: julia, what do you think about that. he was asked that question
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directly a number of times t was also in the statement. very mch shrugged it off. he basically said we could use a little bit more inflation right now? >> absolutely. >> he should shrug it off. i completely disagree with that. what the economy needs is employment and employment will lead to wage growth. then we can start worrying about inflation the adpri -- agree with earn about key the bigger risk they pull back too early and once again we see momentum slip away. this is a fragile recovery the upside of them being wrong so often that they actually acknowledge it and try and adjust. so they systematically too optimistic. they have reacted by adding accommodation and expanding their qe. it has an about the right thing to do. we are getting traction in housing. and investment. melissa: okay. >> this is the only way, this is the only way out. melissa: i will ask the whole panel. john, i will start with you. the $3 trillion question is how do the heck do they get out of the enormous balance
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sheet they put together? minute we get anywhere near 6.5% unemployment, every savvy investor knows they will come in and sell like crazy. he was askedhe question several times. crossing threshold of unemployment won't lead increase to rates. there wille considerable interval between bond buying and rate hikes? do they have have exit strategy? >> no, they don't have exit strategy because they haven't pulled this off before. very hard to be this aggressive and pull it all back without upsetting the economy. that said the fed lowered inflation forecast this time from 1.9 to 1.6. melissa: yeah that that is their way of saying we'll not take this away anytime soon because we're happy where inflation is going. melissa: they have to. steve, isn't the market going to move, the bond market goi to move against them in a really violent way as soon as they think that this whole qe infinity is over?
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>> well, boy, that's a tough question, melissa. i have to confess i've been wrong about this for the last two years. i've expected it interest rate shock or at least a movement. we just really haven't seen it so far. if the economy really starts to pick up steam and we get maybe get 3% growth or more, which is possible, given what we've seen over the last month or so. then yeah, you could s a pickup in interest rates. by the way that puts the federal government in a little bit of debt spiral as interest rates go up. who is the biggest borrower of the word? melissa: we are. >> federal government. >> i don't want to ruin the party here, but with my market hat on whenever i hear talk of about we'll have collapse in bond market i'm a buyer. buying 30-year bonds. working for three years. maybe i will get punished. melissa: it has to indat some point. >> it doesn't have to end as long as the economy is growing very slowly. >> message from the chairman today is exactly that. they have the tools and they can and will gradually, gradually taper this back. melissa: you thi they can
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do it slowly enough the market doesn't turn against them? >> yes. melissa: how do they turn it -- >> this is slow-based licy they're buying so much of the supply they do have control over interest rates and they are, as the chairman said, very transparent. they're going to telegraph, this will be a slow process. if you want to bet against the fed, go ahead but we're going to probably crush you. melissa: okay. >> i think the message from the chairman today was, we are not going to tolerate a 199 backup in interest rates and he mentioned 199 in a couple of occasions lately. that is exactly what they will try to prevent. >> melissa --. melissa: we have to go. great stuff. really interesting. time will tell you hope you're right. great panel. i hope you come back. natural gas futures snatched a five session winning streak. traders keep a close eye on inventory data set to be released tomorrow morning. rising demnd and tighter supplies of natural gas
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climbing more than 18%, yeah, 18% this year. watch for the data tomorrow. it's huge deal. u.s. oil production will soon surpass imports, for the first time in 20 years. we were taalking about this. according to a new report from the energy information administration. by the end of the 2014, u.s. oil production is expected to top eight million barrels a day. that is the highest level since 1988. imports are expected to fall below 7 million barrels a day. that is the lowest since 1995. anadarko petroleum may have found a major new oil field in the gulf of mexico. the field was first thought to contain about 300 million barrels of crude. new analysis shows it may have 2 to three times that amount. shares of anadarko climbed nearly 4% on the news. you love it if you own the stock today. congratulations on that one. next on "money" a billionaire tycoon breaks t his economic crystal ball.
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tillman, ceo of the landry's. what does he see ahead for the economy? do you ever have too much money? ♪
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♪ melissa: so we heard the "money" power panel. want to bring in somebody who knows a thing to about big business in this economy. the ceo of landreau stock company that includes the ding entertainment, gaming, and hospitalit sectors. he is an industry titan, and he is here with me now. great to have you back on the show. you are reopening one of your restaurants. you are clearly expanding. you must have some confidence and was going on. >> we continne to grow. gaming, hospitality, restaurants . i do have confidence in our
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great american capitalism economy. at the same time, it is not backward was a few years ago. we live in a great economy. as you can see, restaurants are busy, hotels are busy. people are buying cars. melissa: you were telling me we were talking before the segments started that it felt like things were done and february. that is interesting. how much to the slowdown. what makes you think that? >> first of, what the administration did not tell us was everyone would lose $2,400 in the check this year. that was a stimulus that we got last year. i think when that hit people in their first paycheck everybody slow down low bit. plus, you did have horrible weather. lots of smoke. the world was coming to an end of march the first. melissa: i forgot about that. did not in the pending after all. told was going to end and then lo and behold nothing really happened. >> plans are going to fly into each other. people invading our borders. like you said, the easter bunny is still going to come. melissa: we're not having the easter egg hunt at the white
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house and nobody contort. as all the really happened. you el like things picked back up? and me, when we look at the data for this month, as it got better than last month? >> it is definitely get better. we tend get used to anything. you had gas prices rise. and we just had a great spring break in theouth. and so it is good. you know, is a great? no. but it has not been great in years. you can still see it coming back. by the end of the year. melissa: how people come into all of your many places of business and spend their money, what is it like? better than last year but worse than 07? how would you characterize that and-out? >> what happened is we plateaued at a high point last year. we have been growing for the last three years. and so now instead of continuing to grow we have leveled off. now, you know, it is great one month. all right the next. it is n that every month or you are just growing at almost double digits. melissa: let me ask you about some of the things that the federal reserve said because
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they make their projections for the you are actually out there living it for real. they talk about unemployment. they say the unemployment picture is improving. but the labor market improvement, i think, was the exact quote. is that how it feels? doest feel like a liberal market is getting tighter? 50,000 employees. >> it is. and what i have said for the last few months now, you are getting to the point where there are a lot of people that justt3 don't want to work. the government keeps continuing the stimulus of keeping people on unemployment. the keep extending it. and so when people can just not work or work for an extra hundred dollars a week than they don't want to go look for a job. melissa: you think it will get a lot better. if you are collecting $300 you could go on and work and make for. >> exactly. so what i think my until you stop the part of the stimulus, i don't think you're going to see a whole point come off the unemployment. melissa: talk to me about inflation because that is something you are close to. you're buying food products and
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making and serving them. the federal reserve thinks there is basically no inflation out there. how'd you feel. >> a little bit. just like in foo products, a lot of things are down. beef continues to go up. people are charging more for tell rooms. different things. we have not seen inflation and a longtime like we think of when things are booming in this economy in this country. melissa: how you characterize the economy in general if you look across all of your business is? a set we are, you know, seeing a return to moderate growth was the "gree do you feel like it is a return to moderate growth? >> i would not quite say moderate. at the things were great up and tell, you know, july, august. that was the first government, you know, the issue of. melissa: they were great. >> and then things slow down. and it pcked up right around christmas. in january to a little bit. i think if you talk to everybody, all consumer businesses, if you look at same-store sales, that is what it will tell you. melissa: stay right where you are. we will take a short break, and
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on the other side of the push to a height minimum wage grows stronger. how can land breeze and the restaurant industry to withstand the blow? we will talk about it. you heard about the $22 minimum wage. piles of "money" coming up. ♪ ♪ your finances can't manage themselve but that doesn't mean they won't try. bring all your finances togeth with the help of the one person who can, a certified financial planner professional. cfp -- let's make a plan.
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melissa: he's making some "money." i'm back. this ceo of lenders ink, which has businesses in dining, gaming, entertainment and hospitality industries. i want to ask y about minimum wage because this is a huge debate right now, and you have 50,000 employees. you know more about it than anyone else. elizabeth warren says it should be $22 an hour and if you look the gains in productivity of workers and contributed to my wages have not kept up. what wld that mean? >> i can promise you that they have never r a business. she would see that the numbers don't work. and every single csumer related company in america would have to lay people off and you would have unemployment at 15%. so she has no idea. is it something that every year maybe should go up, cpi, definitely. you cannot do that. minimum wage is a training wage. very few people who have been with you for an extended amount of time make that.
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that is a training wage, usually in the beginning. when you say minimum -- melissa: people can't live on the minimum wage. it's not a living wage. have you respond. >> first off, i bet you that i have very few employees that make minimum-wage because it's something that somebody might start at and then immediately they start getting increases. they're not increased to $22. promising that. but you still start thinking about it. you -- you're not going to support somebody a minimum wage. you cannottsupport yourself. melissa: that's not what it's for. >> it is usually very young people who are working during high-school, working during college or it is a starting point, but very few people make that. melissa: 50,000 workers in 34 states. thirty-three international locations, but you are here. all of these workers. they raise the minimum wage but would you do immediately? what does that mean? would you assess the situation. >> well, they can't. if they do, like as said, you will have unemployment that goes
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up numerous points. people would like people off. if not that you would have to cut back everyone's hours all over every single consumer retail business ttat there was. melissa: why wouldn't you increase prices. >> because then, once again, if you raise prices 10% of your people are going to come. everybody says fix everything by raising prices just like, you know, the administration is saying we're going to fix health care by you paying for it. the problem is it by raise my prices $2 an entree to pay for it, what will happen is the consumer won't come eat with me. melissa: you're not going to get any more revenue. yowill end up with the same amount of revenue your prices are higher so you will be able to pay people more. >> 100 percent. i use that example of the time. if you raise your prices to 25 people and be $25 a raw land to is lose one customer of a 25 and nab lost $25 of income. melissa: the response, if you were paying people what it would have more money to spend, so there would be able to come in and it would be able to pay your higher prices because you're
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paying them more. but he stated that. >> i say that is absolutely not going to work. how do i know i will get that? are too many different ways and vices. emmy, it just doesn't work. let's go try it. show me where it has worked. simeon economy were in keeping everybody more it works. you can't pay everybody to much. melissa: what would you do? you were saying to me during the break that as soon as you raise the minimum wage if you look around at a restaurant and as for hostesses and your first response is can we get by at three. is that what happened? >> you would have to. basically, even though their a huge company, it's still 500 smaller businesses. what will happen is -- look get all the businesses around you. retail, restaurants, whenever. they close all the time. how're you going to go to 15 or 20 or 22? these are all still small businesses that have a hard time on an individual basis unless you have lots of dollars to make it. melissa: so pracactical. you give it to a straigh
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promise me that you will come back soon. >> absolutely. melissa: thank you so much. next on "money," drowning in student debt could become a thing of the past three entrepreneur is wanted ditch the need for loans and invest in students' future ince. could it be the cure for this student debt crisis? it is fascinating. this ceo behind this plan explains it. at the end of the date, it's all about "money." ♪ this is america.
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♪ melissa: the stude loan debt in this country is nearing a trillion dollars. one company may have found the private sector solution to the ballooning crisis. students with older experienced professionals to agree to invest a certain amount of money toward tuition. in return the prospects of their backers a percentage of their annual income for ten years. very cool. like venture-capital for college. here now to discuss this breakthrough, honor and ceo welcome to the show.
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i think this was so fascinating. and just to explain basically how it works because we said it, someone is trying to raise money to go to school. they get somebody to loan the money and invest in it. a promise to pay them a percentage of their income. basically what you do is match the two sides. >> we provide a technology platform for people to come up, young people come up, their stories, sit with their passionate about and try to convince backers why they should invest in the in this competing, novel way. melissa: and the example, one of the examples i read you the 10% of their earnings for two years. you are saying it is all about how much money you need to know what you're going to study. it is not a fixing. there's a lot of logic. >> we did the pilot with eight people in the race from someone sharing. 6% to 5%. it ranged from filmmakers, journalists and business people, people working in finance, whenever. you can convince backerso invest. melissa: what happens. for example, when you going to
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college you not necessarily know what you will be and what you steady. part of college is discovering what you will duke. what if your plan completely change is? >> that's part of the problem. these days you graduate with such a huge amount of debt. it's not really certain. contesting the cost of education. this is a way that appes step you as a person. people are investing in you and whatever you do. and they have an incentive to help you succeed because they are sharing in that success. melissa: so you areaying that ii you change your mind about what you will be along the way that it does not necessari impact what happens. and thinking about saying to someone, i will get out and be an investment banker. great. 10 percent of your 100,000, 200,000, three had a thousand whenever it will be. but the nevada site and i'm going to be a writer and i may start for five or eight years, have you broken the contract? >> i mean, i think great finance.
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i think it is a matter of day when you're investing in t person. you think they're passionate about something. the on is on them to explain what they want to do and really demonstrate how pass that they are about something. i think that really influences the people investing. melissa: is not just a busted loans to raising money forever. >> i think this applies to, you know, the students to creative stock to be yours to anyone who can demonstrate that they're passionate about something and nvince someone that, you know what, i'm about to do something great and that figure should be part of the journey. >> this is like route 55 crowd funding that makes sense. this is may be getting it back. how many people have gotten involved? much money has been let for yo platform. >> thirty backers for the pilot. we have four and a half dozen applications and total. i think one of the main things th has happened is backers have really been attracted to of investing in people which is completely different anything
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ever done before, and second, the three bottom lines you have from this. a financial incentive, and it makes sense. number two, you are part of a movement. it is social. you are helping to affect change . and three, a human connection where you can actually actively participate and influence your investment and help it succeed. melissa: interesting. if i want to check it out like and go online and look at page. >> at think he would make a fantastic backer. melissa: that i lent money. we'll see. anyway. we will definitely check it out. >> thank you very much for having us. melissa: wha is real. a bizarre scandal over. as neiman-marcus of all places in hot water. wait until you hear this. you can never have too much "money." ♪
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♪ >> enjoying that song. time for spare change, the best part of the show. don't fall, julie, that was close. she almost fell off the chair. >> i did because i was so
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excited about the music you played. >> and david caplin who won't get a word in edge wise. >> that's all right. i'll defer to you guys. >> like any good man. first up, check out this chinese bowl that was bought at a yard sale for three bucks, three bucks. turns out, it is a rare piece fro the northerr song dynasty that ruled china from 960-1279, sold at auction yesterday for a staggering $2.2 million. do you think they used it for popcorn? they probably, you know, when they bought it for three bucks, they probably did use it for popcorn, and now -- >> looks like a crate and barrel. >> it does. it does. what do you think? would you pay 2.2 million? >> if that were in my house for 30 seconds, it would have been smashed and ended the colege trust fund. >> at least. could have bought a fraction of
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an apartment in new york. >> a one bedroom, yeah. >> a yard sale selling this, what else is there? >> right. >> a thousand years old, like, where was the sale? >> i don't know, that's a great question. i didn't read that. i can look again. it's a lovely bowl. i don't know if i would have snapped that up at a yard sale. it's okay. >> it's plain looking, but people look back at things and they troll the neighborhoods and suburbs looking for the finds. >> they are telling me this was in new york, more depressing because we could have had it. >> that could have beenus. >> paid three bucks for it and put popcorn in it forever. >> i wouldn't have bought it because i would have been grossed out someone else drank out of it. >> next up, a now gsh faux fur
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faux faux pas. more people now are buying faux fur. some products are mislabeled. are you inclined to buy real fur or fake fur? >> neither because i don't want pita throwing anything at me. they could think the fake is real. it's not worth it. >> if you're selling out the money to buy real fur and it's a poly cotton blend, you'll be angry, but it's interesting. this is like america's horse meat scandal. this is our issue right now. >> what i love is that there's really rye chose pita person walking with the real fur on. it's hysterical. >> a the russian models wear the fur because pita has not -- >> if they only knew. >> what i love is it makes me feel the next time that's fur and they are furious, it's fake
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because no o knows the difference and there's one, the other, and -- >> and then they throw it at you and it's real. >> big designers like mark guy cobs and burberry. you think fashion houses are luxury, they don't know, but maybe they know. it's strange. >> i think they knew and lost money so people said the didn't buy the real fur, and let's label it fake. >> do you think people know it's real and market it to us as fake? >> i don't know. interesting question. >> conspiracy theory on mark jacobs. >> a gaffe in president obama's trip to israel. things started off bumpy when the president's limo broke down. the reason? it was filled with diesel rather than regular gas. a replacement limo is being brought in from jordan. what do you think? is this karma? >> i got to say if you gas up the car to go somewhere, don't you gait up before the trip? don't you think th